US Dollar Index remains below 99.00 ahead of Fed policy decision
- US Dollar Index halts its winning streak ahead of Fed rate decision.
- The Fed is anticipated to leave its benchmark interest rate unchanged in July.
- US Treasury Secretary Scott Bessent said that the US and China will continue talks over maintaining a tariff truce.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is halting its four-day winning streak and trading around 98.80 during the Asian hours on Wednesday. Investors will closely monitor the US Federal Reserve (Fed) interest rate decision later in the North American session.
The US Fed is widely expected to leave its benchmark interest rate unchanged at 4.25% to 4.50% in July. Traders are now pricing in 97% odds of no change to interest rates at the July meeting, according to the CME FedWatch tool.
The FOMC press conference will be observed for any signs that rate cuts may start in September. Traders are also awaiting key economic data this week, including the Q2 Personal Consumption Expenditures (PCE) inflation report and July’s Nonfarm Payrolls, for further insight into the health of the US economy.
Trump and his administration have kept up pressure on Fed Chair Jerome Powell, sparking concerns about the central bank’s traditional independence and resistance to political influence. Trump has been particularly critical of Powell, fueling speculation in Washington and on Wall Street that he might attempt to remove the Fed chair. For the moment, however, Trump appears to have stepped back from that notion.
On Tuesday, US-China talks in Stockholm ended without an extension of the current truce. US Treasury Secretary Scott Bessent said on Tuesday that the United States (US) and China will continue talks over maintaining a tariff truce before the deadline in two weeks, and Trump will make the final decision on any extension. Bessent tamped down any expectation of Trump rejecting the extension.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.16% | -0.11% | -0.27% | -0.04% | -0.12% | -0.23% | -0.23% | |
| EUR | 0.16% | 0.08% | -0.17% | 0.10% | 0.00% | -0.07% | -0.02% | |
| GBP | 0.11% | -0.08% | -0.24% | 0.07% | -0.05% | -0.12% | -0.08% | |
| JPY | 0.27% | 0.17% | 0.24% | 0.29% | 0.21% | 0.10% | 0.12% | |
| CAD | 0.04% | -0.10% | -0.07% | -0.29% | -0.08% | -0.19% | -0.14% | |
| AUD | 0.12% | -0.00% | 0.05% | -0.21% | 0.08% | -0.07% | -0.02% | |
| NZD | 0.23% | 0.07% | 0.12% | -0.10% | 0.19% | 0.07% | 0.05% | |
| CHF | 0.23% | 0.02% | 0.08% | -0.12% | 0.14% | 0.02% | -0.05% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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